Amazon Stock Poised for Year-End Rally After AWS Strength

Amazon just delivered one of its best earnings reports in recent memory, and now traders are wondering if a year-end rally is in the cards. With AWS firing on all cylinders and seasonal tailwinds kicking in, Amazon might be setting up for a classic “Santa Rally.”

The Technical Setup

The stock is consolidating just above a key support zone around $239, and if that level holds, technical analysts like Cole believe AMZN could climb toward $268—or even higher—before the year wraps up.

Amazon’s chart is looking healthy. The stock is currently trading around $244, hovering just above $239.6—a former all-time high that’s now acting as support. If AMZN can hold this level, the next targets come into view:

• $239.6 – Critical support zone and potential bounce point
• $268.7 – Near-term resistance and likely Santa Rally target
• $295 – Major resistance level that could be tested if momentum continues into early 2025

The price action has been forming higher lows since March, and volume around the $230–$240 range suggests institutions are still accumulating. A solid hold above $239 would likely trigger the next leg up.

What’s Behind the Strength?

Amazon’s recent earnings were stellar—record operating income powered by AWS growth and booming digital advertising. Ironically, last week’s AWS outage—which took down major online services—actually reinforced how critical Amazon’s cloud infrastructure is to the global economy. It reminded everyone that AWS isn’t just big; it’s essential, especially with AI workloads ramping up.

On top of that, Amazon’s AI-driven improvements in logistics and retail are boosting profitability, bringing investors back to big tech after a shaky summer.

If Amazon holds above $239–$240, a year-end rally toward $268–$270 looks very plausible. The “Santa Rally” effect tends to favor large-cap growth stocks in Q4, and AMZN fits the bill perfectly. A break above $268 could even open the door to $295, marking a fresh cycle high.

For now, all eyes are on that $239.6 level—it’s not just a technical pivot, it’s the anchor for the entire Q4 rally story.